I wonder if the thing which would help electricity bills would be if the rate was set by not the final unit of power but by the next 1/3rd.
This would mean that instead of units 1 to 100 getting the price of unit 100 they would get:
Units 1 to 33.3 get the rate for unit 33.3
Units 33.3 to 66.7 get the ratefor unit 66.7
Units 66.7 to 100 get the rate for unit 100
At a time when cheap power is being generated for 67% or more of the demand prices would be low, and it would only be as expensive as it currently is if less than 33.2% was being generated by cheap sources.
The providers would likely still get a premium over the rate which was set by their bid, however it would likely be much smaller.
Taking a silly example, if the last unit cost £1,000 and there was a need for 1,000 of them then that would be £1 million.
However, if the 33.3 unit was £200 and the 66.7 unit was £600 and the 100 unit was £1,500 then that would be £0.8 million (even though had prices had increased 50% over the previous model - for example due to a global supply issue).
Based on current unit rates that could allow prices to fall from 30p to 24p.
Given the Oct-Dec 2026 forecast for theprice cap is around £1,864 to £1,880 for typical usage, up from the £1,641 cap set for April-June 2026, such a reduction would put the price cap around £1,500.
Obviously, not knowing likely prices at the cut off points in can't be sure that a reduction of that scale could happen. Although unless there's limited range between unit prices, they're would likely besome savings.
Whilst rhe ideal would be the bid price is the price paid, the above would keep much of the simplicity of the existing system.
By decoupling a lot of the prices from gas it should reduce the cost of energy for everyone (people and businesses), which could only be a good thing.